In the Cost Ratio method, which expression represents Percent Complete?

In the Cost Ratio method, which expression represents Percent Complete?

• A. Percent Complete = Estimated at Completion / Actual Cost to Date.
• B. Percent Complete = Actual Cost to Date / Budget at Completion.
• C. Percent Complete = Time to Date / Total Time.
• D. Percent Complete = Actual Cost or Work Hours to Date / Estimated at Completion.

Answer: (D)

In the Cost Ratio method, percent complete is based on how much of the forecasted cost has been accumulated. You compare the actual cost incurred to date (or the actual hours worked to date, if you measure by effort) to the estimated total cost at completion. This gives a ratio that reflects progress against what the project is expected to total spend. Using the estimated at completion ensures the measure adapts to changes in burn rate—if spending accelerates or slows, the forecasted total cost updates and the percent complete adjusts accordingly. The other expressions don’t fit as well because: swapping numerator and denominator would invert the sense of the ratio, misrepresenting progress; using the original budget at completion (BAC) rather than the updated estimate at completion (EAC) ignores changes in cost performance; and using time-to-date over total time measures schedule progress, not cost-based progress.

In the Cost Ratio method, percent complete is based on how much of the forecasted cost has been accumulated. You compare the actual cost incurred to date (or the actual hours worked to date, if you measure by effort) to the estimated total cost at completion. This gives a ratio that reflects progress against what the project is expected to total spend. Using the estimated at completion ensures the measure adapts to changes in burn rate—if spending accelerates or slows, the forecasted total cost updates and the percent complete adjusts accordingly.

The other expressions don’t fit as well because: swapping numerator and denominator would invert the sense of the ratio, misrepresenting progress; using the original budget at completion (BAC) rather than the updated estimate at completion (EAC) ignores changes in cost performance; and using time-to-date over total time measures schedule progress, not cost-based progress.